Afternoon Market Summary*
02/06/06
Mr. Market looked tired today and simply couldn't seem to get anything
moving after some early morning enthusiasm. We're always mistrusting of
Monday morning strength, especially when it isn't rooted in anything other
than excited Pittsburgh fans calling in some market orders, which leads us
to be sellers rather than buyers.
The market was led by metals today, but jockeying for the second spot were
the semiconductors, something we definitely are encouraged to see. Breadth
was mildly negative but finished slightly positive on the day and volume
continue to be anemic at best.
We are starting to feel more optimistic as this recent weakness continues
but we aren't rushing to put capital to work in attempts of catching a turn.
We have seen hints of panic creep in to select small caps, only to see them
recover as week holders exit, allowing others to step in and pick up bargain
prices. This is the type of action that leads us to believe there are many
who have not been positioned well this year and are inclined to take
advantage of weakness in attempts to play catch up.
For the time being we are being very patient. We have a long list of
potential buys and many look to be setting up for prudent entry. At this
point it is still a bit early, however we're watching closely should the
action change, warranting more of our dollars.
Have a good evening
RevShark